The tax period for individuals is January to December of each year.
Annual tax returns/declarations for individuals are due by 31 March of the following year after the tax period. However, the following individuals are exempted from filing of annual tax returns:
- Has an annual turnover of less than RWF 2m.
- Receives only employment income.
- Receives only income on investment that is subject to WHT.
- Non-resident individuals who suffer WHT on income sourced from Rwanda.
Payment of tax
Tax on employment income is withheld by the employer under the Pay-As-You-Earn (PAYE) system and remitted to the RRA on a monthly basis together with PAYE returns by the 15th day of the following month.
Tax audit process
There is no specified audit cycle, but individuals can be selected for an audit by any factor by the RRA. The audit or inspection will commence with a request from the RRA for the taxpayer to make available any such records or information as may be required.
Statute of limitations
Submitted tax returns remain open for audit for a period of five years and a taxpayer has an obligation to keep all financial records for a period of ten years.
Topics of focus for tax authorities
High net worth individuals and sole proprietorships are the focus of the RRA.